Redacción Paraguay Business Hub

US Business Delegation Targets Energy, Data Centres and Mining in Paraguay

Businesses, Economy, Foreign Investment /

US Business Delegation Targets Energy, Data Centres and Mining in Paraguay A US business delegation accompanying Deputy Secretary of State Christopher Landau has opened talks with Paraguayan officials over potential investment in energy, logistics and emerging industries. The visit signals a more structured search for projects, but no binding investment commitments have been announced. Paraguay’s Ministry of Industry and Commerce (MIC) reported on 19 October that more than 15 American business representatives attended a strategic roundtable in Asunción. Organised through investment-promotion agency Rediex, the meeting brought companies together with government officials to identify opportunities and discuss follow-up arrangements. The delegation included representatives of logistics, energy, data centres, mining and agribusiness. Industry and Commerce Minister Marco Riquelme argued that private capital is needed to expand electricity supply, transport infrastructure and industrial capacity. He also identified artificial intelligence and mineral development as longer-term priorities. The energy dimension deserves particular attention. New industrial plants and data centres require reliable electricity, suitable connection infrastructure and clear commercial terms. Paraguay’s substantial hydroelectric resources may be an advantage, but their availability does not, by itself, establish the feasibility of individual projects or guarantee power-delivery capacity at a proposed site. Landau, who led the trade mission during his official visit, said the objective was to build direct relationships between US and Paraguayan businesses and move beyond diplomatic declarations. The initiative follows a wider bilateral agenda covering trade, investment and economic cooperation.   For international operators, the practical opportunities extend beyond headline projects. Engineering contractors, equipment suppliers, industrial-service companies and specialist advisers could benefit if discussions evolve into funded investments. At the same time, regulatory certainty, environmental approvals, land access, energy tariffs and regional logistics will be central to project appraisal. The roundtable should not be read as evidence that any company has committed capital. The MIC did not publish a list of agreed investments, construction timetables or signed contracts. Investors should distinguish commercial interest from project execution. The next meaningful indicators will be feasibility studies, identified counterparties, financing structures and formal agreements. Until then, the visit is best understood as an opening for negotiations rather than a completed investment breakthrough. Sources Ministry of Industry and Commerce (MIC), strategic US–Paraguay investment roundtable, 19 October 2026 MIC, industrialisation and infrastructure priorities discussed with US delegation, 19 October 2026 MIC, remarks by US Deputy Secretary of State Christopher Landau, 19 October 2026 © 2026 Paraguay Business Hub. Independent editorial content. For information only.

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US Medical-Supplies Manufacturer Gentell Plans to More Than Double Paraguay Workforce

Businesses, Economy, Foreign Investment, Mercosur/EU /

US Medical-Supplies Manufacturer Gentell Plans to More Than Double Paraguay Workforce Gentell aims to increase employment at its Pedro Juan Caballero factory from 60 to 150 workers in 2027. The plan highlights a growing export-oriented segment of Paraguayan manufacturing beyond food, textiles and vehicle components. Paraguay’s Ministry of Industry and Commerce (MIC) disclosed the expansion plans on 19 October following a visit to Gentell’s facility in Amambay, near the Brazilian border. The factory began operating approximately 18 months ago and produces specialist healthcare supplies, including wound dressings and ostomy products. Its output reaches customers in Paraguay, Brazil and other international markets. Roberto Schain, chief executive of Gentell Brazil, said the company intends to install additional machinery and increase staffing next year. The business is also considering further investment in 2027 and 2028. The ministry did not disclose a capital budget, a production-capacity target or a binding schedule for the expansion. Unlike investment announcements involving prospective factories, Gentell already operates a manufacturing site in Paraguay. That distinction matters: the immediate opportunity is to scale an existing export operation rather than establish whether the project will be built at all. Gentell’s corporate website identifies manufacturing facilities in six countries: Brazil, Canada, China, New Zealand, Paraguay and the United Kingdom. Its international product range includes advanced and traditional wound-care supplies, as well as skin and personal-care products.   For suppliers and foreign investors, the possible expansion could create demand for production equipment, packaging, quality-control services, maintenance and cross-border logistics. It also illustrates the potential for smaller Paraguayan industrial locations to participate in specialised regional supply chains. Medical supplies are not ordinary consumer goods, however. Regulatory approvals, product classification, labelling, traceability and quality requirements must be checked separately for each destination market. Proximity to Brazil does not remove those obligations or guarantee competitive freight costs. The employment figure of 150 is a company target for 2027, not the current workforce. The next meaningful indicators will be equipment installation, confirmed hiring and sustained export orders. Those developments will show whether Gentell’s planned expansion translates into additional industrial capacity and jobs. Sources Ministry of Industry and Commerce — Gentell expansion plans, 19 October 2026 Gentell — Corporate website and international manufacturing locations Ahendu — Industrial expansion in Pedro Juan Caballero, 20 October 2026 © 2026 Paraguay Business Hub. Independent editorial content. For information only.

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EU-Mercosur Agricultural Safeguards Add a New Layer for Paraguayan Exporters

Businesses, Economy, Foreign Investment, Mercosur/EU /

EU-Mercosur Agricultural Safeguards Add a New Layer for Paraguayan Exporters The EU-Mercosur trade framework is now operational, but preferential access for sensitive agricultural products comes with a safeguard system designed to react quickly to market disruption. For Paraguayan exporters, the practical message is clear: tariff preferences and quotas create opportunity, while EU monitoring, traceability and market conditions remain part of the commercial equation. 19 October 2026 As the EU-Mercosur Interim Trade Agreement moves through its first months of provisional application, agricultural exporters are operating under a parallel EU safeguard regime that can temporarily suspend preferences if imports cause or threaten serious injury to European producers. Regulation (EU) 2026/687 entered into force earlier this year and applies alongside the trade agreement, which has been provisionally applied since 1 May 2026. A faster safeguard mechanism for sensitive agriculture The regulation is designed around products considered politically and economically sensitive in Europe, including beef, poultry, sugar, eggs and other agricultural goods. For these sectors, the EU can open a safeguard investigation when import developments indicate possible serious injury. The agreed framework introduced a 5% monitoring threshold measured against a three-year average for sensitive products, lowering the trigger originally proposed during the legislative process. Once an investigation is opened, the timetable is relatively short. The European Commission is expected to conclude investigations within four months, while provisional measures may be introduced within 21 days in urgent circumstances. The mechanism does not mean that a 5% increase automatically cancels a tariff preference; the Commission must still assess whether the legal conditions for safeguard action are met. But it makes market monitoring much more relevant for exporters. Preferential access remains commercially significant The safeguard rules sit beside the quotas negotiated in the agreement. The EU will allow a 99,000-tonne preferential quota for Mercosur beef, a 180,000-tonne duty-free quota for poultry and a 25,000-tonne pigmeat quota, all subject to their respective phase-in rules. Paraguay also secured a separate 10,000-tonne duty-free sugar quota, while several other products receive preferential treatment under specific schedules. For Paraguayan producers, these quotas can materially improve access to a high-value market, particularly where the ordinary EU tariff is substantial. At the same time, the volumes are deliberately limited. The European Commission notes that the beef quota represents only around 1.5% of EU production and that the poultry quota is roughly 1.3%. The design is therefore intended to expand trade while limiting the risk of sudden pressure on EU farm markets.   Compliance remains as important as the tariff The safeguard framework reinforces a broader point about EU-Mercosur implementation: preferential tariffs do not relax European food-safety or sanitary standards. Paraguayan exporters must still comply with EU import controls, veterinary and phytosanitary requirements, traceability obligations and product-specific certification. The European Commission has also announced increased audits of non-EU countries and EU border control posts during 2026-2027. That distinction matters for investment decisions. A meat processor or poultry producer considering additional capacity for the European market must model not only the tariff saving, but also the cost of certification, traceability, cold-chain infrastructure and the possibility that market safeguards could affect preferences if import conditions change sharply. The agreement improves market access; it does not remove regulatory or market risk. What investors should watch For companies evaluating Paraguay as an export platform, the most relevant indicators will be actual quota utilisation, price movements in the EU, the evolution of Paraguay’s share of Mercosur allocations and any safeguard monitoring initiated by the Commission. The first years of the agreement will also show whether Paraguayan exporters can use their preferential access consistently rather than only episodically. The broader opportunity remains substantial. Paraguay combines competitive agricultural production with new preferential access to Europe, but the value of that access will depend on disciplined compliance and the ability to maintain commercial relationships inside quota limits. For investors, the EU-Mercosur agreement should therefore be treated as a structured market-access framework, not as an unconditional guarantee of duty-free exports. Sources Council of the European Union – EU-Mercosur agricultural safeguard regulation European Parliament – Implementing the bilateral safeguard clause for agricultural products European Commission – Benefits and protection for European farmers under EU-Mercosur European Commission – EU-Mercosur agreement text and provisional application © 2026 Paraguay Business Hub. All rights reserved.

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Paraguay’s Services Exports Set to Grow 20% in 2026, but the Digital Opportunity Remains Largely Untapped

Businesses, Economy, Foreign Investment /

Paraguay’s Services Exports Set to Grow 20% in 2026, but the Digital Opportunity Remains Largely Untapped A new UN regional trade report forecasts another strong year for Paraguay’s services exports. Transport and trade-related activities explain much of the momentum, while the country’s relatively small knowledge-services base points to a different, longer-term opportunity for foreign investors. The Economic Commission for Latin America and the Caribbean (ECLAC) released its 2026 International Trade Outlook on 15 October. It forecasts a 20% increase in the value of Paraguay’s services exports this year, compared with 12% for Mercosur overall and 11% for Latin America and the Caribbean. Paraguay’s projected growth follows a 30% increase in 2025. The distinction matters: the 30% figure is the previous year’s performance, not ECLAC’s forecast for 2026. Exports of services had already risen 20% year on year in the first half of 2026, according to the report. The main drivers are not necessarily software or financial technology. ECLAC links Paraguay’s strong performance primarily to the recovery of transport and logistics services and to business activity connected with trade inside and outside the region. For a landlocked economy, transport services can expand alongside merchandise exports. There is, however, a second story in the report. ECLAC identifies modern services—including information technology, professional and business services, finance and creative activities—as a potential source of higher-value exports. Its comparative figures put Paraguay’s modern-services exports at approximately USD 40 million in 2024, a modest base relative to larger regional providers. That gap may interest international companies considering shared-service centres, software development, specialist back-office operations or other cross-border service activities. Low operating costs alone will not settle an investment decision: multilingual skills, reliable digital infrastructure, legal certainty and access to trained personnel also matter. ECLAC recommends combining export promotion, foreign investment attraction and workforce development. The relevant question for Paraguay is therefore not simply whether services exports continue growing, but whether a larger share eventually comes from activities that are less dependent on freight volumes. Investors should treat the 20% figure as a forecast for total services exports, not evidence of equivalent growth in digital services. Detailed balance-of-payments data and new business announcements will be needed to track that transition. Sources ECLAC, International Trade Outlook for Latin America and the Caribbean 2026, 15 October 2026 (Tables I.9 and I.12; Figure II.8) ECLAC, press release on goods and modern-services exports, 15 October 2026 © 2026 Paraguay Business Hub. Independent editorial content. For information only.

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Paraguay’s Exports Jump 25.7% as Maquila Gains, but Beef Sales Decline

Businesses, Economy, Foreign Investment, Mercosur/EU, Taxation /

Paraguay’s Exports Jump 25.7% as Maquila Gains, but Beef Sales Decline Paraguay exported almost USD 16 billion in the first nine months of 2026, a strong increase driven by soy products and manufacturing under the maquila regime. Yet weaker beef and rice sales show why international investors should look beyond the headline growth rate. 14 October 2026 The Central Bank of Paraguay’s September trade report, published in October, puts cumulative exports at USD 15.97 billion, up 25.7% from the same period of 2025. Imports rose 15.0% to USD 15.26 billion, leaving a trade surplus of USD 712 million. The composition of exports matters. Registered exports accounted for USD 10.22 billion, or 64% of the total. Re-exports reached USD 3.99 billion, representing another 25%, while the remaining category of other exports contributed USD 1.76 billion. These classifications should not be confused: not every dollar recorded in total exports represents goods manufactured domestically. Agricultural products remain influential. Reported soybean-grain exports amounted to USD 3.11 billion, alongside USD 591.7 million in soybean oil and USD 565.3 million in soybean meal. Increased shipments in these categories explain much of the rise in registered exports, underscoring the economy’s continued exposure to harvests and commodity markets. Manufacturing also expanded. Exports under the maquila regime reached USD 1.15 billion, 29% above the comparable 2025 figure. The regime supports production in Paraguay for foreign markets and is increasingly relevant to companies evaluating regional supply chains. Its shipments are part of the reported trade statistics, not an additional amount to be added to total exports.   Performance was not uniform. Exports of beef and bovine offal fell 5.3% in value to USD 1.54 billion, while parboiled rice exports declined 6.6% to USD 262.1 million, according to the Central Bank figures reported by local media. For foreign investors, rising imports alongside export growth suggest activity in both domestic demand and international supply chains. The trade figures, however, do not by themselves establish improvements in margins, production volumes or competitiveness; price movements can also affect values. The principal question for the remainder of 2026 is whether Paraguay can maintain manufacturing growth while broadening its export base beyond a small group of agricultural commodities. Sources Banco Central del Paraguay — September 2026 Foreign Trade Report La Nación — Sector-level export performance, 13 October 2026 InfoNegocios — Trade balance analysis, 14 October 2026 © 2026 Paraguay Business Hub. Original editorial content. General information only; not investment or legal advice.

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Darnel Eyes Paraguay Packaging Plant to Supply Mercosur Markets

Businesses, Economy, Foreign Investment /

Darnel Eyes Paraguay Packaging Plant to Supply Mercosur Markets International packaging manufacturer Darnel Group is considering a production facility in Paraguay as part of a strategy to serve neighbouring Mercosur markets. The proposal could strengthen an industrial supply chain serving food producers and distributors, but the company has not yet announced a final investment decision. Paraguay’s Ministry of Industry and Commerce (MIC) disclosed the discussions on 14 October following a meeting between Minister Marco Riquelme and senior Darnel executives, including chief executive Salvador Miñarro. The company is assessing local production capacity as a means of expanding its regional footprint and improving product competitiveness. According to the MIC, Darnel employs more than 4,500 people, offers approximately 5,000 product lines and serves around 40,000 customers in 50 countries. The company already markets packaging solutions in Paraguay, although its existing commercial presence should not be confused with a confirmed local manufacturing plant. The industrial logic is straightforward. Packaging is an essential input for food processing, beverages, agriculture-related businesses and retail distribution. A facility closer to regional customers could potentially reduce certain transport costs, shorten delivery times and provide greater flexibility in product specification. Those benefits would depend on production scale, sourcing and cross-border logistics. Darnel’s portfolio includes products made from recycled plastics, paper, aluminium and renewable materials. Its own website emphasises recyclable and other lower-impact packaging solutions. Any Paraguayan operation would still need to satisfy applicable environmental, food-contact and product standards in each intended export market.  The prospective project would fit a broader interest in using Paraguay as a manufacturing base for regional supply chains. However, the ministry did not identify a site, investment budget, construction schedule or expected employment level. None of those figures should be treated as established until formally announced. For foreign manufacturers and suppliers, the development is worth following because packaging production can generate demand for industrial equipment, maintenance, transport, raw materials and recycling services. Investors considering comparable projects should assess input availability, energy reliability, labour, logistics and customs conditions; preferential trade or tax treatment cannot be assumed without checking the applicable rules. The next meaningful milestones will be a confirmed location, committed capital and a timetable for construction. For now, this is a credible expression of industrial interest, not an operating project. Sources Ministry of Industry and Commerce (MIC), 14 October 2026 Darnel Group, corporate profile La Nación, 14 October 2026 © 2026 Paraguay Business Hub. Independent editorial content.

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